Among the many differences between Israel’s current war against Hamas in Gaza and the other wars it has fought in the past few decades, one aspect has gone underexamined: its economic impact. Israel’s previous wars have had limited economic fallout, in part due to their brevity. Fortunately, the Israeli economy entered the war in relatively good shape in terms of its resilience and strength. The economy has recorded high, albeit declining, annual rates of growth, averaging 3.9 percent since 2000. In addition, Israel’s financial metrics were strong prior to the war, with a budget and current account surplus, and a falling debt-to-GDP ratio in 2022.

Source: The North Africa Journal December 11, 2023 19:01 UTC